But there are other ways scammers can get your money. According to the report, which was based on 7,000 complaints filed to Fraud. org, credit cards were used 30 percent of the time in scams and debit cards 12 percent.
Last year showed a big jump in the use of gift cards, particularly iTunes cards. In 2016, Fraud. org saw a 30 percent increase in complaints where the payment method included gift cards. In these cases, the victim is asked to load funds onto a gift card and then give the code and PIN number off the back of the card to the scammer, who then deducts funds from the card, leaving the consumer with little recourse to obtain a refund.
Fraud costs are on the rise. According to the report, the median loss was $ 600 last year, double the cost in 2015. Romance scams, in which victims were in a friendship or relationship with the swindler, continued to be the most expensive, with a median loss of $ 2,000.
For the fourth year in a row, internet merchandise scams topped the scam list, making up 30 percent of complaints reported to Fraud. org. Many consumers come into contact with these scams through merchandise advertised at deep discounts on a website, social media platform or internet forum, according to the NCL. Scammers offered the discounts on goods like iPhones, sneakers, luxury apparel, video game systems and pets.
In many cases, victims reported being contacted again after not receiving the goods and instructed to send more money to cover fake“ shipping” or“ insurance” charges.
Some examples of internet merchandise sales scams reported to Fraud. org:
� Anna in California paid $ 3,500 for a used Honda. The seller spoofed a third-party payment site, requesting the funds in iTunes gift cards. The car was never delivered. � John in Indiana paid $ 600 for a Rottweiler puppy named Roscoe, who never arrived. � Jennifer in Texas bought nearly $ 400 worth of non-existent airline tickets through a fake site. � Irene in Chicago ordered NFL jerseys through a website claiming to be an official NFL gear vendor.
What arrived were clearly low-quality knockoffs.
The best way to avoid merchandise scams is to shop around, said an NCL spokesman. A price far below what other merchants are asking is a red flag.
“ The convenience of online shopping is simply unbeatable for many consumers,” said John Breyault, director of Fraud. org.“ Obviously there are plenty of legitimate companies online, but there are also fraudulent sellers out to cheat consumers— and they are very good at what they do.”